What is “lock-in”?
The term “lock-in” describes a phenomenon where tenants find themselves stuck in their current accommodation, despite the fact that it has become too big or unsuitable for their needs. This problem is particularly noticeable in big cities, where rents fluctuate wildly. But what explains this phenomenon, and what are the consequences?
With the shortage of housing in many large cities, such as Geneva and Lausanne, many tenants find themselves in uncomfortable situations. For example, families needing more space are faced with high rents for larger units, while people occupying large apartments, which have often become too large for their needs, are reluctant to move because of the costs associated with smaller accommodation.
The main reason for “lock-in” is high moving costs. In cities where rents are rising rapidly, moving to a smaller home may not offer the savings hoped for. According to a study by Raiffeisen, downsizing can sometimes not compensate for the difference in rent, leaving little incentive to move.
Stéphanie Loetscher Licari, a resident of Préverenges, has experienced this: although she is considering downsizing her apartment now that her children have left home, the high prices for smaller accommodation scare her away. The difference in cost is minimal compared to what she currently pays, which dissuades her from making the change.
This phenomenon is exacerbated by the presence of many “empty-nesters” - homes that have outgrown their occupants after their children have left home. A study by the Zurich University of Applied Sciences reveals that almost half of all home-owning parents find themselves with excess space. This represents a significant potential for reducing living space, but many are reluctant because of the additional costs involved.
To alleviate the “lock-in” problem, some cities, like Lausanne, are experimenting with apartment exchange programs. These initiatives aim to facilitate housing changes for families and senior citizens. Nevertheless, challenges remain, not least rent increases when changing tenants, which make such exchanges less attractive. In parallel, platforms such as hoyou, which operates throughout Switzerland, offer property exchange services. These digital tools simplify the search and exchange process, by connecting people with complementary needs, such as families looking for more space with senior citizens with oversized homes.
The development of innovative solutions such as these platforms could help to better manage these situations. In addition, efforts to increase the supply of affordable housing could also help reduce the effects of “lock-in”.
The “lock-in” phenomenon highlights the complex challenges associated with housing shortages and fluctuating rents.
Sources
rts.ch - Article
rts.ch - Article
A paradoxical situation
With the shortage of housing in many large cities, such as Geneva and Lausanne, many tenants find themselves in uncomfortable situations. For example, families needing more space are faced with high rents for larger units, while people occupying large apartments, which have often become too large for their needs, are reluctant to move because of the costs associated with smaller accommodation.
The cost of moving
The main reason for “lock-in” is high moving costs. In cities where rents are rising rapidly, moving to a smaller home may not offer the savings hoped for. According to a study by Raiffeisen, downsizing can sometimes not compensate for the difference in rent, leaving little incentive to move.
Stéphanie Loetscher Licari, a resident of Préverenges, has experienced this: although she is considering downsizing her apartment now that her children have left home, the high prices for smaller accommodation scare her away. The difference in cost is minimal compared to what she currently pays, which dissuades her from making the change.
"Empty nests” and oversized homes
This phenomenon is exacerbated by the presence of many “empty-nesters” - homes that have outgrown their occupants after their children have left home. A study by the Zurich University of Applied Sciences reveals that almost half of all home-owning parents find themselves with excess space. This represents a significant potential for reducing living space, but many are reluctant because of the additional costs involved.
Towards solutions?
To alleviate the “lock-in” problem, some cities, like Lausanne, are experimenting with apartment exchange programs. These initiatives aim to facilitate housing changes for families and senior citizens. Nevertheless, challenges remain, not least rent increases when changing tenants, which make such exchanges less attractive. In parallel, platforms such as hoyou, which operates throughout Switzerland, offer property exchange services. These digital tools simplify the search and exchange process, by connecting people with complementary needs, such as families looking for more space with senior citizens with oversized homes.
The development of innovative solutions such as these platforms could help to better manage these situations. In addition, efforts to increase the supply of affordable housing could also help reduce the effects of “lock-in”.
Conclusion
The “lock-in” phenomenon highlights the complex challenges associated with housing shortages and fluctuating rents.
Sources
rts.ch - Article
rts.ch - Article